Last week Target announced that it is pulling out of Canada and this news will once again change the Canadian retail industry. There are 133 Target store locations across Canada that are up for sale and companies have the opportunity to study these locations to determine if purchasing these locations suits their companies’ strategic goals.
We conducted an analysis to determine store distances from all 133 Target store locations to the nearest Wal-Mart, Costco, Canadian Tire, Superstore, Loblaws, Lowe’s, Maxi & Cie, Zehrs and Dominion. All of these companies pose as possible purchasers of existing Target store locations.
If any of the aforementioned companies are located far away or over 30 kilometers away from Target store locations, then the specified Target locations could be viewed as attractive purchases for these major companies.
The study revealed many things including the fact that all Wal-Mart locations, except one, are located within 30 kilometers of all Target store locations. Canadian Tire is also a company with an extensive network in which all of its stores are located within 30 kilometers of all Target store locations.
There are 16 Costco locations that are located more than 30 kilometers away from Target stores so this could provide a chance for Costco to scoop up some of these locations.
Superstore and Loblaws located in Ontario and Quebec have several locations located a far distance away from several Target locations and thus have prospective buying opportunities.
Home improvement company Lowe’s has room to grow its presence in Canada since it does not have a huge amount of store locations compared to some of the other companies in this study. Lowe’s has virtually no presence in Atlantic Canada or Quebec and also has room to add stores at several other Canadian locations.
Goodlife Fitness announced this week that it would be looking at former Canada Target locations as part of its growth strategy.
Another purchaser could include TJX Companies, which owns Winners, HomeSense, TJ Maxx and Marshall’s. These average store sizes are approximately 30,000 square feet.
The average store size of Target Canada locations is approximately 100,000 square feet. Since this store size is bigger than what some of the prospective purchasers would need, some former Target locations could be divided up for sale.
RioCan Real Estate Investment Trust owns many of the leases and will be analyzing properties to help determine possible future tenants.
Please click here to view distance data report.